I have been wandering between CeFi and DeFi. The advantage of CeFi is a strong sense of security, with assets held on the platform, as if someone is backing it. But the problem is that it is a passive trust; you are completely reliant on the platform's transparency and accountability. DeFi, on the other hand, is free and open, but the operations are complex and the risks are uncontrollable. Sometimes, a small mistake can lead to a liquidity black hole.
It wasn't until I came across BounceBit that I felt a new combination between these two experiences. On one hand, it retains the custodial properties of CeFi, giving assets a sense of being 'protected'; on the other hand, it directs funds into the DeFi world, providing various yield scenarios. Simply put, you don't have to run so many complex on-chain operations yourself, nor do you have to worry about the complete 'black box' of CeFi.
I imagine a user who originally locks funds in a certain exchange, not knowing how they are being used. But if it’s through BounceBit, he can see which DeFi strategies the funds are entering and how to earn returns. The combination of custody and transparency finds a balance between the familiar and the unfamiliar. For many hesitant individuals, this design might be the first step towards DeFi.
